The Medicines Company
The 10-second takeaway
For the quarter ended June 30 (Q2), The Medicines Company beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins grew.
The Medicines Company notched revenue of $172.8 million. The 10 analysts polled by S&P Capital IQ predicted sales of $168.7 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $135.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The eight earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.50 for Q2 were 8.7% higher than the prior-year quarter's $0.46 per share. GAAP EPS of $0.30 for Q2 were 20% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.0%, 550 basis points worse than the prior-year quarter. Operating margin was 16.7%, 230 basis points better than the prior-year quarter. Net margin was 10.5%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $173.9 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $686.3 million. The average EPS estimate is $1.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 161 members out of 177 rating the stock outperform, and 16 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give The Medicines Company a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on The Medicines Company is outperform, with an average price target of $37.95.
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